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'Visible exports were €45,537 million in the second quarter of 2017 while visible imports were €22,178 million in the same period.' (Source: CSO, 2017) (i) Explain each of the underlined terms - Leaving Cert Economics - Question b - 2018
Question b
'Visible exports were €45,537 million in the second quarter of 2017 while visible imports were €22,178 million in the same period.' (Source: CSO, 2017) (i) Explain ... show full transcript
Worked Solution & Example Answer:'Visible exports were €45,537 million in the second quarter of 2017 while visible imports were €22,178 million in the same period.' (Source: CSO, 2017) (i) Explain each of the underlined terms - Leaving Cert Economics - Question b - 2018
Step 1
Explain each of the underlined terms.
Answer
Visible exports refer to goods that are produced in one country and then sold to consumers in another country. This includes tangible items such as food, machinery, and manufactured goods. Conversely, visible imports are the goods that are purchased from foreign countries and brought into the domestic market for consumption. These can include items such as electronics, clothing, and foreign-produced food products.
Step 2
Step 3
Outline two economic advantages for the Irish economy if exports are greater than imports.
Answer
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Employment Creation: If exports exceed imports, this typically leads to increased demand for goods produced locally in Ireland, resulting in the need for more workers and thereby creating jobs.
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Increased GNP / Economic Growth: The revenue generated from exports circulates back into the economy, contributing to national income, which can enhance overall economic growth and increase the standard of living for residents.